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Work incentives and other effects of the transition to social assistance: Evidence from the Slovak Republic

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Author Info

  • Martina Lubyova

    () (Institute for Forecasting, Slovak Academy of Sciences, Sancova 56, SK-81105 Bratislava, Slovakia)

  • Jan van Ours

    () (Department of Economics, CentER for Economic Research, Tilburg University, P.O. Box 90153, NL-5000 LE Tilburg, The Netherlands)

Abstract

In this paper we investigate whether the potential disincentive effects of the Slovak benefit system have an actual meaning. Using data from subsequent labour force surveys we study the determinants of the outflow from unemployment to a job and the determinants of the outflow to out of the labour force. We find that single unemployed, highly educated unemployed and unemployed living in the capital Bratislava have higher exit rates both to a job and to out of the labour force. The characteristic with a distinctly different effect on both exit rates is the previous labour market position We also find that there are fluctuations in the hazard rate over the duration of unemployment. However, these fluctuations are not very informative. The direct indicators of the type of unemployment benefit do not affect the exit rates, neither do the indirect indicators like, for example, the presence of young children. Although there are potential disincentive effects in the Slovak benefit system we find no evidence that these potential effects materialise.

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 23 (1998)
Issue (Month): 1/2 ()
Pages: 121-153

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Handle: RePEc:spr:empeco:v:23:y:1998:i:1/2:p:121-153

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Related research

Keywords: Unemployment duration · benefits · incentives · transition economy;

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Cited by:
  1. van Ours, Jan C., 2002. "The Locking-in Effect of Subsidized Jobs," IZA Discussion Papers 527, Institute for the Study of Labor (IZA).
  2. Iturriza, A. & Bedi, A.S. & Sparrow, R.A., 2007. "Unemployment assistance and transition to employment in Argentina," ISS Working Papers - General Series 1765018747, International Institute of Social Studies of Erasmus University (ISS), The Hague.
  3. van Ours, Jan C., 2000. "Do Active Labor Market Policies Help Unemployed Workers to Find and Keep Regular Jobs?," IZA Discussion Papers 121, Institute for the Study of Labor (IZA).
  4. Ours, J.C. van, 2000. "Do Active Labor Market Policies help Unemployed Workers to find and keep Regular Jobs," Discussion Paper 2000-10, Tilburg University, Center for Economic Research.

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